Simulation of orebody geology with multiple-point geostatistics-application at Yandi channel Iron ore deposit, WA, and implications for resource uncertainty

Abstract

Development of mineral resources is based on a spatial model of the orebody that is only partly known from exploration drilling and associated geo- logical interpretations. As a result, orebody models generated from the available information are uncertain and may require the use of stochastic or geostatistical simulation techniques. Multiple-point methods have been developed for petroleum reservoir modelling enabling reproduction of complex geological geometries for ore bodies. This paper considers a multiple-point approach to capture the uncertainty of the lithological model at the Yandi channel iron ore deposit, Western Australia. Performance characteristics of the method for the application are discussed. It is shown that the lithological model uncertainty translates into considerable grade-tonnage uncertainty and variability that is now quantitatively expressed.